Stocks Opened Higher on Global Factory Activity

U.S. stocks opened higher on Tuesday, after positive reports on global manufacturing bolstered sentiment.  The Dow Jones industrial average lately rose 114.39 points or 0.77 percent, to 14,924.70, the  S&P 500 gained 16.18 points or 0.99 percent, to 1,649.15 and the Nasdaq Composite added 41.72 points or 1.16
percent, to 3,631.59.

Demand picked up in the U.S. manufacturing sector in August, data showed on Tuesday, which together with a report  showing steady growth in China’s services sector added to signs of strength in the world’s two biggest economies. Financial data firm Markit said its final U.S. Manufacturing Purchasing Managers Index fell to 53.1, below July’s  reading of 53.7 and the initial August reading of 53.9. A reading above 50 indicates expanding activity.

Led by firm U.S. growth, the outlook is gradually improving for advanced economies while even crisis-weary Europe  is at last joining the recovery, the OECD said on Tuesday.

The White House raced on Monday to persuade Congress to authorize military action in Syria, after President Barack Obama, in one of the biggest gambles of his presidency, handed the volatile issue to lawmakers who have given him few recent legislative victories.

Verizon Communications (VZ.N) agreed on Monday to pay $130 billion to buy Vodafone Group (VOD.L) out of its U.S. wireless business, signing history’s third largest corporate deal announcement to bring an end to an often tense 14-year marriage.

Microsoft Corp. (MSFT) said Tuesday that its $7 billion acquisition of Nokia Corp. was made in part to ensure future access to devices that can run its Windows Phone software.